Blozis Company Case Report

Executive Summary Blozis Company is a manufacturer of highly technical equipment for use in industrial applications. Part of their business is selling pre-fabricated items off the shelf. However, the majority of their business is related to building specialty technical equipment to the customer’s specifications. Blozis has run into some issues with being long overdue with payments to vendors. In nearly all instances it was delayed because there had been no record of receiving the items. This was largely due to the expediter who went out and picked items up at nearby suppliers and brought them in and directly to the requestor, not stopping to give any paperwork to the receiving clerk. Blozis operates with an informal purchasing policy where anyone can request items for purchase. This is highly uncommon and it needs to change. For Blozis to fix their various purchasing and supply issues they need to institute a formal purchasing procedure. In addition, they need to control the expediter and limit the responsibilities that he has, because it seems that this is where many of the problems are stemming from. Upper management will have to write a formal policy where only certain people can issue requisitions, and those requisitions are approved prior to being forwarded to the supply department for purchase. Next they will need to initiate some sort of goods receiving notification system, to notify the requestor that their item has arrived in the Blozis warehouse and it can be picked up by the requestor only. This should alleviate any confusion whether or not items have been received, and help ensure that the correct person receives the correct items. If Blozis properly implements a purchasing procedure it will allow them to save money by paying their bills on time and receiving discounts from their suppliers. Additionally, it should allow them to keep better track of items bought and received in the warehouse.

Issues Identification Blozis